Open Leadership: How Social Technology Can Transform How You Lead

Charlene LiAltimeter GroupAugust 25, 2010

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Twitter: @charleneli#ATLCharleneLi

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It’s about relationships

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Open Leadership4

Having the confidence and humility to give up the need to be in control,while inspiring commitment from people to accomplish goals

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Conversations, not messages

Human, not corporate

Continuous, not episodic

The New Normal5

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10 elements of openness6

• Explaining• Updating• Conversing• Open Mic• Crowdsourcing• Platforms

Information Sharing

• Centralized• Democratic• Consensus• Distributed

Decision Making

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Determine how open you need to be with information to meet your goals

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Openness audit available at http://bit.ly/opennessaudit

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Understand the socialgraphics of your audience

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Curating

Producing

Commenting

Sharing

Watching

<1%

34%

26%

63%

78%

Source: Global Wave Index Wave 2 Trendstream.net, January 2010

U.S. adults

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Four goals define your open strategy9

LearnDialog

Support

Innovate

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How Best Buy became open10

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Best Buy’s First Social Media Experts11

Steve Bendt & Gary Koelling

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Steve & Gary had an executive sponsor

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Barry Judge CMO of Best Buy

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Barry’s first post13

“I was so relieved when it was over—it was just two sentences to get started.”

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The Premier Black Fiasco14

6.8 million emails sent instead of 1,000 test

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Being an Open Leader

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The Four Open Leadership Archetypes

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Cautious Tester

Realist Optimis

t

Worried Skeptic

Transparent

Evangelist

Pessimist Optimist

Collaborative

Independent

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Skills of successful Open Leaders

Lionel MenchacaDell

Ed TerpeningWells Fargo

Lovisa WilliamsUS Dept. of State

Shares easily Authentic Transparent Disciplined

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Dell was on fire…literally19

Osaka, JapanJune 21, 2006

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Authenticity was earned over time20

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Transparency came slowly but surely to Wells Fargo

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March 2006

January 2009

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Transparency takes time, patience22

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Discipline led to results at Dept. of State

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Started with clear social media policy.

Reached out to leaders with the greatest need – embassy staff.

Jakarta embassy has ~150,000 fans on Facebook.

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Create Sandbox Covenants

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Getting Started

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#1 Align openness with strategic goals

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Examine your 2010 goals

Pick one where open and social can have an impact

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#2 Prepare your organization27

Can you add value?

Evaluate the

purpose

Respond in kind & share

Thank the person

Unhappy Customer?

DedicatedComplainer

?

Comedian Want-to-

Be?

NegativePositive

Yes No

Do you want to

respond?

No Response

No

Yes

Take reasonable action to fix issue and let customer know action taken

Are the facts

correct?

Gently correct the facts

No

No

No

Yes

Are the facts

correct?

Does customer need/deserve

more info?

Yes

Explain what is being done to

correct the issue.

Yes

Is the problem

being fixed?

Yes

Let post stand and monitor.

No

Yes

NoYes

Yes

Assess the message

Adapted from US Air Force Comment Policy

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“We tend to overvalue the things

we can measure, and undervalue

the things we cannot.”

- John Hayes, CMO of American

Express

#3 Understand the value

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+ Value of purchases- Cost of acquisition

____________________

= Customer lifetime value

The new lifetime value calculation

• Percent that refer• Size of their networks• Percent of referred

people who purchase• Value of purchases

• Percent that provide support

• Frequency and value of the support

+ Value of new customers from referrals

+ Value of support+ Value of ideas

+ Value of insights

Spreadsheets for 15 year lifetime value calculation available at charleneli.com/resources

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• Acknowledge that failure happens.

• Encourage dialog to foster trust and speed recovery.

• Adopt Google’s mantra: “Fail fast, fail smart”

#4 Prepare for failure

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Focus on relationships, not the technologies.

Determine how open you need to be achieve your strategic goals.

Seek out and support your open leaders. Embrace failure and mistakes – you’ll be

making many of them.

Summary31

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Open Leadership Awards32

http://bit.ly/OLawards2010

Case studies due September 10th

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Thank you

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Charlene Licharlene@altimetergroup.com

charleneli.com/blog

Twitter: charleneli

For slides, send an email to

slides@altimetergroup.com

Open Leadership Awards

http://bit.ly/OLawards2010